STB approves Watco's acquisition of Great Lakes Central Railroad

The Surface Transportation Board on Aug. 29 announced it granted authority for Watco Holdings Inc. to acquire control of Great Lakes Central Railroad Inc. (GLC), a short line operating in Michigan, subject to certain conditions. 

The acquisition will add GLC, which operates 379 miles of rail line, to Watco’s portfolio of 1 regional and 43 short lines in the United States, according to an STB press release. In early March, Watco announced it intended to acquire GLC. Financial terms of the acquisition were not disclosed. 

The STB's decision follows a thorough review of the petition for exemption filed by Watco on March 6. After the board directed Watco to supplement its petition, Watco filed additional information about the potential impacts of the transaction on competition.

In its filings, Watco stated its commitment to implementing service improvements and modernizing GLC’s infrastructure. Specifically, Watco presented that its acquisition of control of GLC will create streamlined routing efficiencies between GLC and Ann Arbor Railroad (AA), allow GLC to gain access to Watco’s experienced marketing team and allow Watco to invest $3.7 million in GLC’s network, STB officials said.

Watco also informed the STB that the transaction will not reduce competitive options for shippers and committed to keeping open all currently active gateways operated by GLC and the Watco-owned AA, to which GLC connects. No party opposed the transaction, and the state of Michigan submitted a letter in support of the acquisition.

Click here to read the board's decision.